An Assessment of Random Audit--A New Department of Labor Program To Improve the Accuracy of Unemployment Insurance Benefit Payments
HRD-84-26
Published: Mar 30, 1984. Publicly Released: Mar 30, 1984.
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Highlights
GAO assessed the Department of Labor's random audit program which was initiated to improve the accuracy of benefit payments under the unemployment insurance system.
Recommendations
Recommendations for Executive Action
| Agency Affected | Recommendation | Status |
|---|---|---|
| Department of Labor | The Secretary of Labor should direct the Assistant Secretary for Employment and Training to determine the adequacy of federal efforts to monitor the implementation of the random audit. |
Closed – Implemented
Labor replaced the Random Audit program with a more comprehensive and precise Quality Control (QC) program. States voluntarily implemented the program beginning on March 31, 1986, pending approval of the program's final regulations by the Office of Management and Budget. Labor regional staff assigned to monitor the QC program have been trained and provided with a monitoring handbook.
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| Department of Labor | The Secretary of Labor should direct the Assistant Secretary for Employment and Training to determine and evaluate alternatives for assessing the extent, type, and cause of overpayments in extended benefits and federal supplemental compensation claims. |
Closed – Not Implemented
The Federal Supplemental Compensation program was terminated in March 1985 and the Extended Benefits program was operating in only two states in July 1986. Accordingly, Labor took the position that it would not be cost-effective to implement this recommendation for such a limited application. Labor plans, however, to test alternative methodologies if economic conditions change.
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Topics
AuditsCompensation claimsstate relationsOverpaymentsUnemployment insurance benefitsInsurance claimsUnemployment insuranceInsurance ratesUnemploymentTaxes